Inherited a House in San Diego? Here's What to Do Next

The phone call came when you least expected it. Maybe it was a late evening, or early on a weekend morning. Someone you loved has passed, and somewhere between the grief and the funeral arrangements, you learned that you've inherited a house in San Diego.

If you're reading this, you're probably still processing everything. That's completely normal. Inheriting property is one of those life events that nobody really prepares you for. It arrives wrapped in emotion, legal complexity, and a hundred decisions you never asked to make.

Take a breath. You don't have to figure this all out today.

This guide is here to help you understand what comes next, step by step, with no pressure and no sales pitch. Just honest information from someone who has helped many San Diego families navigate this exact situation.

First Things First: Give Yourself Grace

Before we dive into the practical stuff, let's acknowledge something important. You're grieving. Whether the person who left you this house was a parent, a grandparent, a sibling, or a friend, their absence is real and it matters.

Some people inherit a home and feel immediately overwhelmed by the responsibility. Others feel guilty about making any decisions at all, as if selling the house would somehow be disrespectful to the person who lived there. Still others feel conflicted because they're dealing with family members who have different opinions about what should happen.

All of these feelings are valid. There is no "right" way to feel about inheriting property.

What I can tell you is this: the person who left you this house wanted to give you something of value. Whatever decision you ultimately make, whether you keep it, rent it, or sell it, you're honoring their gift by being thoughtful about it.

Understanding Probate in California

If you've inherited a house in San Diego, there's a good chance the word "probate" has already come up. Let's demystify it.

Probate is the legal process of transferring ownership of a deceased person's assets to their heirs. In California, this process is handled by the Superior Court in the county where the deceased person lived.

When Is Probate Required?

Probate is typically required when:

• The deceased person owned real estate in their name alone
• The total value of their estate exceeds $184,500 (as of 2024)
• There is no living trust in place

When Can You Avoid Probate?

You may be able to skip probate if:

• The property was held in a living trust
• The property was held in joint tenancy with right of survivorship
• The property was community property with right of survivorship
• The total estate value is under the small estate threshold

How Long Does Probate Take?

In San Diego County, probate typically takes between 8 and 18 months, though complicated estates can take longer. During this time, you generally cannot sell the property without court approval.

If you're not sure whether probate applies to your situation, it's worth consulting with a probate attorney. Many offer free initial consultations, and they can give you clarity about your specific circumstances.

Assessing the Property You've Inherited

Once you have legal authority to act (either through probate, a trust, or another mechanism), it's time to take stock of what you've inherited.

Visit the Property

If you haven't already, spend some time at the house. This isn't just about assessing its condition. It's also about saying goodbye, about being in a space that held meaning for someone you loved.

While you're there, take note of:

• The general condition of the house (roof, foundation, plumbing, electrical)
• Any obvious repairs that need attention
• What's inside the house (furniture, personal belongings, valuables)
• Whether the house is currently occupied or vacant
• The condition of the yard and exterior

Gather Important Documents

Look for the following documents, either at the house or among the deceased person's papers:

• The deed to the property
• Any existing mortgage documents
• Property tax statements
• Homeowners insurance policies
• HOA documents (if applicable)
• Utility bills and account information
• Any rental agreements (if tenants are present)

Get a Professional Opinion

Consider hiring a home inspector to give you an honest assessment of the property's condition. This typically costs between $300 and $500, but it can save you from expensive surprises down the road.

Your Three Main Options

When you inherit a house, you essentially have three paths forward. Each has its own advantages and challenges.

Option 1: Keep the House

Some people inherit a home that they actually want to live in. Maybe you've been renting and this is an opportunity to become a homeowner. Maybe the house is in a neighborhood you love. Maybe it holds too many memories to let go.

If you're considering keeping the house, think about:

• Can you afford the ongoing costs (mortgage payments, property taxes, insurance, maintenance)?
• Is the house in a location that works for your life?
• What repairs or updates would you need to make it livable for you?
• Are there other heirs who would need to be bought out?

Option 2: Rent the House

Turning an inherited property into a rental can provide ongoing income and allow the property to appreciate over time. This is a popular choice for people who aren't ready to sell but can't or don't want to live there.

If you're considering renting, think about:

• Are you prepared to be a landlord (or pay a property manager)?
• Is the property in a desirable rental market?
• What repairs would you need to make to attract tenants?
• What are your ongoing obligations for taxes, insurance, and maintenance?
• Are you comfortable with the financial uncertainty of vacancies and repairs?

Being a landlord in California comes with significant responsibilities and legal requirements. San Diego's rental market can be competitive, but it also requires you to stay current on tenant protection laws and fair housing requirements.

Option 3: Sell the House

Many people who inherit property ultimately decide to sell. This is especially common when:

• You don't live in San Diego and can't manage the property from afar
• The house needs significant repairs you can't afford
• You need the cash more than you need another house
• Multiple heirs are involved and selling is the fairest way to divide the inheritance
• The emotional weight of keeping the house is too heavy

If you're leaning toward selling, you have several ways to do it.

Understanding Your Options for Selling

The Traditional Route: Listing with a Real Estate Agent

This is the path most people think of first. You hire a real estate agent, fix up the house, list it on the market, and wait for a buyer.

Advantages:

• Potential to get the highest price if the house is in good condition
• The agent handles marketing and negotiations
• Familiar process that most people understand

Challenges:

• Agent commissions typically run 5% to 6% of the sale price
• You'll likely need to make repairs and updates before listing
• The process takes time, often 3 to 6 months or more
• You'll need to keep paying carrying costs (taxes, insurance, utilities) while you wait
• The house needs to be kept in showing condition
• Deals can fall through due to financing, inspections, or cold feet

For Sale By Owner

Some people try to sell without an agent to save on commissions. This can work, but it requires significant time and knowledge.

Advantages:

• No agent commission
• You control the process

Challenges:

• You're responsible for pricing, marketing, negotiations, and paperwork
• Limited exposure to buyers compared to MLS listings
• Most buyers still have agents who will expect you to pay their commission
• Higher risk of legal issues if paperwork isn't handled correctly

Selling to a Cash Home Buyer

This is what we do at SD Home Offers. Cash home buyers purchase properties directly, typically in as-is condition, for a fair price paid in cash.

Advantages:

• No repairs or cleaning needed
• No agent commissions or fees
• Close in as little as 7 to 14 days
• No showings, open houses, or strangers walking through
• Cash offer with no financing contingencies
• Certainty and simplicity during an already difficult time

Challenges:

• The price will typically be lower than what you might get on the open market after repairs
• You're trading top dollar for speed, convenience, and certainty

For inherited properties, especially those that need work or are located far from where you live, selling to a cash buyer is often the path of least resistance during an emotionally challenging time.

Special Considerations for Inherited Properties

The Stepped-Up Basis Tax Advantage

Here's some good news. When you inherit property, you receive what's called a "stepped-up basis." This means the IRS considers your cost basis to be the fair market value of the property at the time of the previous owner's death, not what they originally paid for it.

For example, if your grandmother bought her San Diego home in 1975 for $50,000 and it's now worth $800,000, you won't owe capital gains taxes on that $750,000 appreciation. Your new basis is $800,000. If you sell for $810,000, you'd only owe taxes on the $10,000 gain.

This is a significant tax benefit, and it's one reason why selling an inherited property often makes financial sense.

Dealing with a House Full of Belongings

One of the hardest parts of inheriting a property is dealing with a lifetime of belongings. Clothes in closets, photos on walls, kitchens full of dishes, and garages full of memories.

There's no right timeline for this work. Some people dive in immediately because they find the activity comforting. Others can't bear to touch anything for months. Both approaches are okay.

When you're ready:

• Consider hiring an estate sale company if there are valuables
• Donate usable items to local charities
• Rent a dumpster for items that can't be saved
• Ask family members if they want any keepsakes before disposing of things
• Take photos of items you can't keep but want to remember

If you sell to a cash buyer like SD Home Offers, we can often purchase the property with everything still inside, handling the cleanout ourselves. This removes one more burden from your plate.

When Multiple Heirs Are Involved

Inheriting property with siblings, cousins, or other family members adds a layer of complexity. Everyone has different financial needs, different emotional connections to the property, and different ideas about what should happen.

Some tips for navigating shared inheritance:

• Communicate early and often
• Consider having a neutral third party (like an estate attorney) facilitate discussions
• Be open to compromise
• Remember that preserving family relationships is usually more important than any house

If one heir wants to keep the property and others want to sell, the solution is often for the one who wants it to buy out the others' shares at fair market value.

Getting Started with SD Home Offers

If you've decided that selling your inherited San Diego property is the right choice, we're here to help make that process as simple and stress-free as possible.

Here's how it works:

Step 1: Tell us about the property. Fill out the form on our website or give us a call. We'll ask some basic questions about the house and your situation.

Step 2: We'll make you a fair cash offer. Usually within 24 to 48 hours, we'll present you with a no-obligation cash offer based on the property's condition and current market values.

Step 3: You decide. There's no pressure. Take the time you need to consider our offer, consult with family, or explore other options. We'll be here when you're ready.

Step 4: Close on your timeline. If you accept, we can close in as little as 7 days, or we can wait longer if you need more time. We work around your schedule.

We've helped many San Diego families sell inherited properties, and we understand the emotional weight that comes with these transactions. You won't find any high-pressure tactics here, just honest people trying to provide a helpful service during a difficult time.

Final Thoughts

Inheriting a house in San Diego is both a gift and a responsibility. Whatever you decide to do with the property, know that there's no wrong answer. The best choice is the one that gives you peace of mind and helps you move forward.

If you have questions about your specific situation, we're always happy to talk. Even if you're not sure you want to sell, we can often provide useful information about the local market, property values, and your options.

You can reach us anytime through our website or by phone. We're a local San Diego company, and we genuinely care about helping our neighbors during some of life's most challenging moments.

Take care of yourself first. The house can wait.